50% stake in LI property portfolio sold for $135 million

A 50 percent stake in a portfolio of 38 commercial properties on Long Island has been sold by one high-profile joint venture partner to another for $135 million, according to brokers.

The properties account for 3.6 million square feet of mostly industrial space in Nassau and Suffolk counties.

Prior to the sale, the portfolio was owned by Manhattan-based real estate giants FBE Ltd., started by Abraham Fruchthandler, and Cammeby’s International Group, founded by Rubin Schron. The owners initially sought to sell the portfolio to a new investor, but FBE instead sold its 50 percent stake to Cammeby’s, said Gary Gabriel of Cushman & Wakefield’s East Rutherford, New Jersey office.

Tenants include Sam Ash and Ultimate Precision Metal, according to a news release from Cushman. Newsday, also a tenant, operates a newspaper distribution center in leased space at 360 Smith St. in Farmingdale, one of the buildings in the portfolio.

Cammeby’s and FBE did not respond to requests for comment.

“We had a lot of interest for it,” said Gabriel, who oversaw the marketing and sale of the portfolio with a team including Andrew Merin, David Bernhaut, Kyle Schmidt, Brian Whitmer and Stephen Palmese.

“Industrial is hugely sought after by the investor class, so we saw a lot of interest in a market that doesn’t see a lot of trades,” Gabriel said. “That scarcity caused one partner to effectively step up and say ‘Hey I want to keep it.’ ”